Shares of Chinese electric maker Nio Inc – ADR (NYSE: NIO) ended 1.6% higher Monday despite reporting a year-over-year decline in deliveries for the month of January and warning of a sales drop relative to the peak months of 2019.
The shares were trading higher again in Tuesday’s session.
Here’s a look at four reasons as to why the stock weathered the negative catalysts and is pushing ahead.
Weak Numbers Baked In For Nio
With the new coronavirus Covid-19 wreaking havoc across China and forcing a shutdown beyond the weeklong Chinese Lunar New Year holiday, a weak number was factored in by the market.
An 11.5% drop apparently didn’t hurt investment sentiment to a notable extent.
Broader Market Strength
The broader market is recovering from a Covid-19-induced sell-off seen in the aftermath of the onset of the virus outbreak in late January.
The major averages — the Dow, the S&P 500 Index and the Nasdaq Composite Index — all ended Monday’s session higher.
Nio’s Recent Funding Agreement
The $100 million in committed funding Nio announced last week may have also encouraged investors to stay with the stock.
At that time, the automaker reassured investors that amore positive news flow is likely to follow on this front, as it is working on additional financing projects.
Nio’s Technical Support
Nio shares have been finding support around the $3.60-3.70 area since December.
Incidentally, this area also served as resistance a few times in the middle of 2019 and a couple of times subsequently.
With the stock dropping to $3.74 intraday Feb. 7, which is closer to the support area, buying is likely to have been triggered.
Despite the tenacity shown by the stock, Nio is not out of the woods